Lincoln Financial Advisors Corp. Lawsuits, Complaints and FINRA Arbitration Claims

Lincoln Financial Advisors Lawsuits, Complaints & FINRA Arbitration Claims

The White Law Group is investigating potential securities claims involving Lincoln Financial Advisors Corp., a formerly independent, dual-registered broker-dealer and investment adviser now operating under the Osaic Wealth brand following a 2024 acquisition. Investors who suffered losses due to unsuitable recommendations, broker misconduct, or supervisory failures may be eligible to recover damages through FINRA arbitration.

Lincoln Financial Advisors Corp. – Firm Background

Lincoln Financial Advisors Corporation (CRD #3978; SEC #801-42530, 8-14685), a dual-registered broker-dealer and investment adviser, was headquartered in Fort Wayne, Indiana. Prior to its 2024 acquisition, the firm reported 21 disclosure events on its BrokerCheck record, including 14 regulatory events and 7 arbitrations, according to FINRA, the self-regulatory organization that oversees brokers and brokerage firms.

Lincoln Financial Advisors marketed itself as an independent broker-dealer operating under Lincoln National Corporation and its affiliates, alongside Lincoln Financial Securities Corporation, also based in Fort Wayne.

Update: Osaic Completed Its Acquisition of Lincoln Financial Advisors and Lincoln Financial Securities

On December 14, 2023, Osaic Inc. (formerly Advisor Group) signed a definitive agreement to acquire Lincoln Financial Advisors Corporation and Lincoln Financial Securities Corporation from Lincoln National Corporation for approximately $725 million. The deal closed on May 6, 2024, bringing more than 1,400 advisors and approximately $115 billion in client assets onto the Osaic platform.

Following the close, Lincoln Financial Advisors Corporation was renamed Osaic FA, Inc., and Lincoln Financial Securities Corporation was renamed Osaic FS, Inc. Both entities were fully consolidated into Osaic Wealth, Inc. (CRD #23131) by March 2025, and their standalone FINRA registrations are no longer active.

Investors who worked with a Lincoln Financial Advisors representative may now be serviced under the Osaic Wealth brand. For current regulatory actions and complaint history involving Osaic Wealth, see our full review: Osaic Wealth Lawsuit, Complaints & Reviews.

SEC Fines Lincoln Financial Advisors and Lincoln Financial Securities $8.5 Million Over Recordkeeping Failures (February 2024)

On February 9, 2024, the SEC found that Lincoln Financial Advisors Corporation and Lincoln Financial Securities Corporation willfully violated federal recordkeeping and supervision requirements after employees, including supervisors, routinely used personal devices and unapproved messaging platforms to conduct firm business beginning at least January 2019. Most of these off-channel communications were not preserved as required. The firms were censured and ordered to pay a combined $8.5 million civil penalty, jointly and severally, as part of a broader SEC sweep that fined 16 firms a total of $81 million for similar violations.

The SEC order triggered a statutory disqualification for both firms. According to a FINRA Rule 19h-1 notice dated October 14, 2024, FINRA approved the firms’ continued membership subject to a heightened supervision plan requiring annual employee training on approved communication channels, semi-annual disclosure of any unapproved messaging use, and a formal disciplinary process for violations.

FINRA Examination Findings: Variable Annuity Supervision Failures (2023-2024)

The same FINRA filing disclosed that routine 2023 examinations of both firms resulted in cautionary action letters and referrals to FINRA Enforcement, including allegations that the firms failed to:

• Develop and implement a reasonably designed anti-money laundering program
• Adequately supervise variable annuity recommendations for suitability
• Enforce written supervisory procedures for mutual fund switch disclosures
• Maintain supervisory systems to verify municipal bond proceeds were not used for securities trading
• Obtain required verbal confirmation for certain large third-party wire transfers

A separate January 2023 FINRA cautionary letter found that Lincoln Financial Advisors failed to maintain a supervisory system reasonably designed to ensure eligible customers received applicable sales charge waivers when rolling over 529 education savings plans between states, a violation of MSRB Rule G-27.

Prior Regulatory Sanctions Against Lincoln Financial Advisors

• 2016: The Ohio Division of Securities reportedly ordered Lincoln Financial Advisors to cease and desist over the allegedly improper sale of non-traded REITs, including sales above concentration limits, failure to supervise, and suitability failures.
• 2015: FINRA censured and fined Lincoln Financial Advisors $90,000 for failure to supervise after a representative allegedly engaged in unsuitable penny-stock trading.
• 2015: Lincoln Financial Advisors was separately censured and fined $150,000 after FINRA found that representatives allegedly improperly recommended a high-risk hedge fund to 25 customers.
• 2013: The Massachusetts Securities Division fined Lincoln Financial Advisors $100,000 and ordered restitution over the alleged sale of non-traded REITs that exceeded concentration limits set in the offering prospectus.

Lincoln Financial Advisors – Lawsuits to Recover Investment Losses

The White Law Group has represented numerous investors in claims against Lincoln Financial Advisors Corp., including the following:

March 2022 – The White Law Group submitted a claim against Lincoln Financial Advisors Corp. to FINRA Dispute Resolution on behalf of three Ohio residents alleging common law fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim alleged that Lincoln Financial Advisors unsuitably invested its clients in Atlas Growth Partners LP, CNL Healthcare Properties, and KBS Growth & Income REIT.

February 2022 – A claim was submitted to FINRA Dispute Resolution on behalf of a Kansas resident alleging common law fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim alleged that Lincoln Financial Advisors unsuitably invested its client in Cole Credit Property Trust IV (now CIM Real Estate Finance Trust) and Atlas Resources Series 34-2014 LP, seeking damages between $100,000 and $500,000.

March 2020 – The White Law Group filed a FINRA claim against Lincoln Financial Advisors on behalf of two brothers in North Dakota, alleging common law fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim alleged unsuitable investment in Atlas Resources Series 34-2014 LP, a high-risk oil and gas limited partnership, seeking damages between $100,000 and $400,000.

September 2020 – The White Law Group filed a FINRA claim against Lincoln Financial Advisors Corp. on behalf of two Virginia residents, alleging common law fraud, breach of fiduciary duty, negligence, and negligent supervision related to numerous high-risk alternative investments.

Recovery of Investment Losses Through FINRA Arbitration

The White Law Group continues to investigate potential securities claims involving Lincoln Financial Advisors and its successor entities under Osaic Wealth.

All broker-dealers have a responsibility to adequately supervise their employees and maintain procedures and systems designed to detect misconduct. Brokerage firms that fail to monitor the business activities of their representatives may be liable for investment losses caused by negligent supervision.

When brokers violate securities laws, such as by making unsuitable investment recommendations, the brokerage firm they work for may be liable for investment losses through FINRA arbitration. FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional, providing an alternative to filing claims in court.

What the Osaic Merger Means for Former Lincoln Financial Advisors Clients

Because Lincoln Financial Advisors and Lincoln Financial Securities have been fully absorbed into Osaic Wealth, Inc., investors researching their account history may find current activity reported under the Osaic name rather than Lincoln Financial Advisors. Osaic Wealth has separately faced its own regulatory actions since the merger, including an $18 million SEC fine over off-channel communications and a FINRA restitution order exceeding $3 million tied to mutual fund sales charge waivers. Investors with accounts formerly held at Lincoln Financial Advisors should review our Osaic Wealth complaints and regulatory history page for the most current information.

FAQs About Lincoln Financial Advisors Lawsuits & Complaints

Is Lincoln Financial Advisors still in business?

Lincoln Financial Advisors Corporation was acquired by Osaic Inc. in May 2024 and has since been renamed and fully consolidated into Osaic Wealth, Inc. Former Lincoln Financial Advisors representatives and client accounts now operate under the Osaic Wealth brand.

Can I still file a claim if my broker moved from Lincoln Financial Advisors to Osaic?

Yes. Investors may still be able to pursue FINRA arbitration claims for losses that occurred while an account was held at Lincoln Financial Advisors, regardless of the firm’s subsequent name change or merger, subject to applicable FINRA eligibility rules and statutes of limitation.

What types of investments led to complaints against Lincoln Financial Advisors?

Complaints and regulatory actions involving Lincoln Financial Advisors have frequently centered on non-traded REITs, high-risk oil and gas limited partnerships, hedge funds, penny stocks, and variable annuities, along with allegations of failure to supervise the brokers who recommended them.

How long do I have to file a FINRA arbitration claim?

FINRA generally applies a six-year eligibility rule from the occurrence of the events giving rise to a claim, though other statutes of limitation may apply. Investors should speak with a securities attorney promptly to evaluate potential deadlines.